A simple structure would be to make all debt payable over 40 years, carrying an interest rate of 2 .

In fact, there is no simple relationship between the size of a government s deficit or debt and the interest rate that it must pay.

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But how simple?

And what that means simple and understandable might not be actually simple or understandable, and things we think are complex might be made simple and understandable.

Indeed, many academic economists believe that central bankers could perfectly well be replaced with a computer programmed to implement a simple rule that adjusts interest rates mechanically in response to output and inflation.

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And withhold simple assistance .

And withhold simple assistance .

In fact, there is no simple relationship between the size of a government s deficit or debt and the interest rate that it must pay. British government bonds now offer significantly lower interest rates than those of France, Italy, or Spain, even though the United Kingdom s fiscal position is considerably worse.

If the solution is so simple, why has no elected body implemented it? My fear is that politicians want to be perceived as tough on bankers, but have no interest in really fixing the problem.

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Let me ask you a simple question with a really simple answer Who has the biggest military budget?

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There are just three simple rules.